Mahama Ayariga, the Minister-designate for Local Government, Chieftaincy and Religious Affairs, has pledged to secure increased government funding for the Chieftaincy Institution. This commitment is contingent on his approval by Parliament.
Mr. Ayariga made this promise during his vetting before Parliament’s Appointments Committee on Thursday, August 27. He emphasized the Chieftaincy Institution's constitutional importance and its significant responsibilities. Adequate resources are necessary for traditional authorities to perform their functions effectively across various levels, from local councils to the National House of Chiefs.
This initiative fits into Ghana's broader economic narrative of strengthening local governance and resource allocation. The government has consistently sought to decentralise development and empower local structures. Enhancing the financial capacity of traditional institutions could improve local administration and service delivery. This also aligns with efforts to improve internally generated funds at the district level, a key component of public finance reform.
“What I can assure you is that I will try and get the Minister for Finance to make adequate budgetary provision for the chieftaincy institution,” Mr. Ayariga told the committee. He also noted the potential for significant revenue mobilisation within the local government system. He believes better collection of existing fees, levies, charges, and rates could provide additional resources.
The implications of this pledge are significant for public finance and local governance. Increased central government allocations would impact the national budget, potentially shifting funds from other sectors. Improved local revenue collection could reduce reliance on central government transfers, fostering greater financial autonomy for local assemblies. Decision-makers will watch how these funding mechanisms are implemented and their impact on traditional authority operations. Markets will observe any shifts in public spending priorities.
Mr. Ayariga highlighted that traditional authorities play both legislative and adjudicatory roles. These roles are crucial for maintaining social order and resolving disputes at the community level. He explained that the institution operates from traditional council levels up to the National House of Chiefs. This broad reach underscores the need for consistent financial support to ensure operational efficiency.
The Minister-designate outlined a two-pronged approach to support the Chieftaincy Institution. First, he will explore increased allocations from the central government. Second, he will work to improve revenue mobilisation by local government authorities. This includes the collection of legally due fees, levies, charges, and rates. Strengthening local government finances would enable them to better support traditional authorities in their respective areas.
He argued that many fees and levies are currently not being collected effectively. Improving this collection process would generate substantial internally generated funds. These funds could then support critical sectors and institutions, including traditional authorities. This strategy aims to create a more sustainable funding model for local governance and chieftaincy affairs. The success of this approach will depend on effective policy implementation and collaboration between ministries.